Grasim Industries Q3 profit at Rs787 crore
New Delhi: Aditya Birla Group firm Grasim Industries on Wednesday reported a consolidated net profit of Rs786.87 crore for the quarter ended December 2017, mainly on account of higher expenses and loss from subsidiaries.
The company had posted a net profit of Rs952.33 crore during the October-December period of the previous fiscal, Grasim Industries said in a regulatory filing. Total income during the quarter under review stood at Rs15,523.75 crore. It was Rs 9,743.51 crore in the corresponding period in the previous fiscal.
The company said figures for the period are not comparable due to merger of Aditya Birla Nuvo Ltd and acquisition of cement plants by its subsidiary Ultratech Cement from Jaiprakash Associates Ltd and Jaypee Cement Corporation last year.
Revenue is not comparable on account of GST implementation from 1 July, 2017.
Grasim Industries said the reported consolidated profit after tax for the quarter is lower compared to the previous period mainly on account of share of the company in the net loss of Idea Cellular Ltd, an associate firm.
The domestic viscose staple fibre (VSF) market demand remained buoyant with sales volume up by 9% YoY, the company said, adding that the uptrend in domestic caustic soda prices continued in the current quarter, driven by supply related issues in China and Europe and robust demand from major consuming segments (alumina and textile).
“UltraTech reported an increase in consolidated net revenue by 34% YoY to Rs8,019 crore and EBITDA by 17% to Rs1,494 crore in the quarter,” Grasim Industries said.
On outlook, the company said the VSF business will continue to focus on expanding the market in India by partnering with the textile value chain.
“The demand for caustic soda in India is expected to grow with rising consumption from the alumina and textile sectors,” it added.
On cement business, it said government spending on infrastructure, rural and affordable housing will be the key demand drivers.